Thawing relations: A file photo of US President Joe Biden and Chinese President Xi Jinping meeting on the sidelines of the G20 summit last year. Experts say China remains crucial to global companies due to its huge domestic market. — AP
Beijing: Despite geopolitical tensions and mounting uncertainty, China and the United States should work together and rebuild trust to bring about a win-win outcome, as closer economic cooperation between the world’s two largest economies will benefit even other economies, experts say.
Jin Xu, chairman of the China Association of International Trade, said he sees huge growth opportunities and great potential for Sino-US cooperation, especially in trade, finance, green development, technology and the digital economy.
“I have a rosy view of the future relationship and cooperation between the two countries,” he told China Daily in an exclusive interview recently.
“Sino-US cooperation will not only benefit businesses and citizens in both nations but also help stabilise and boost global economic development.”
Citing the recent meeting between the presidents of the two countries in San Francisco, Jin said that has sent a positive signal, suggesting stabilisation and improvement in bilateral ties between the two nations.
He said he expects further moves to enhance mutual trust and deepen ties between the citizens and enterprises of China and the United States.
Bilateral trade between China and the United States hit a record high of US$759.4bil last year, up 0.6% year-on-year, data from the General Administration of Customs showed.
Jin said Sino-US economic and trade ties were impacted by some Western countries’ “decoupling” or “de-risking” strategy, adding that such attempts will also harm global trade and investment.
Simon Lacey, head of digital trade and geopolitics at the World Economic Forum, said the notion of decoupling or de-risking is misguided as it falsely identifies China as the risk.
“I think the right response is not to seek decoupling or de-risking but rather to seek to rebalance the world economy.
“So, the challenge is really sort of global rebalancing rather than singling out any one country as a source of risk.
“And I think this rebalancing effort that needs to take place requires cooperation over confrontation,” he said.
He said China and the United States can work together and rebuild trust in a number of areas, including green transition.
Looking ahead, Lacey said the two countries need to get back to a state where they are cooperating and recognising that they are strategic competitors.
“They also have a lot more to gain from cooperation than from confrontation. There’s only one outcome to confrontation and we all lose.
“Whereas there are many possible positive outcomes to cooperation, which can really lead to some great win-win outcomes.”
Lacey highlighted China’s importance to global firms with its ultra-large domestic market as well as its role as a centre for innovation and research.
“So, global companies who want to stay at the cutting edge of technological innovation need to be in China for producing, selling and innovating. Otherwise, they just can’t maintain their global competitiveness.
“China has made remarkable progress in upskilling its workforce and creating the world’s largest middle-income group; where it needs to do better is spreading the benefits of its growth beyond its cities to the countryside, and achieving a sort of more balanced and more inclusive growth.” — China Daily/ANN
